A tax levy is an action taken against a taxpayer by the Internal Revenue Service, in an effort to collect unpaid federal tax liabilities. A tax lien involves the seizure of a property to pay off tax debt owed by an individual. In most cases, the property at issue may include automobiles, bank accounts, boats, houses, paychecks, private property, tax liens, refunds and more. It is not uncommon for taxpayers to be hit with a tax levy even when they do not owe any federal income tax.
As a tax lien collector, it is your responsibility to find, collect and return your overdue levies. If you do not timely return your levy it will become a public record. Once the Internal Revenue Service obtains the records from the tax levy lien auction, they will attempt to auction the property listed in the lien. Any investor may bid on a listed tax levy. If no one bids on it, the IRS will auction it again.
When you are delinquent on your federal tax obligations, in many cases the IRS will send you a notice of intent to levy. If you do not pay back taxes within a certain amount of time, you will receive a court order for collection. In some cases, the amount of the back taxes may exceed the current fair market value of the property being seized. Some people try to negotiate with the IRS to settle the debt in a shorter period of time. A qualified tax levy attorney will be able to provide assistance if you are facing financial difficulties due to a tax lien being filed against your home or property.
When you face a financial hardship situation because of outstanding federal levies, contact a tax levy attorney as soon as possible at www.coloradotaxattorneys.net/tax-levy-lawyer-loveland-co/. You need someone who can make you understand all of your options. He will explain the process to you, and help you determine which option is best for your particular situation. The options that a tax lien attorney can assist you with include: first, in how to stop the IRS from sending you a Notice of Default, or “NSD”. Notifying the IRS that you have received a Notice of Default will stop any action that they may have in processing your delinquent amounts.
The second option, and probably the easiest, is to pay back the funds you owe. The tax levy attorney can help you negotiate an affordable payment plan with your creditors. In some tax liens cases, a payment plan can eliminate the need for a tax lien auction.
Negotiating with your creditors could also result in an offer in compromise. This means that the IRS will accept a lower amount than what is owed in order to satisfy the debt. There is no guarantee that a tax attorney will be able to stop the IRS from garnishing your wages, but in some instances this is the best option. If you continue to struggle with the IRS, you can file for bankruptcy which will effectively stop them from contacting you. While bankruptcy is not the best option, it does allow you to eliminate the threat of wage garnishment.